What changed
RBI observed non-compliance with the existing timeline for submitting auditor certificates on escrow account balances. It now explicitly requires the certificate to be furnished within a fortnight from the end of each quarter, as per the circular of December 27, 2010.
What it means for you
Banks and payment system operators must tighten internal processes to ensure auditor certificates are prepared and submitted promptly. Delays could invite regulatory scrutiny or penalties under the Payment and Settlement Systems Act.
What you must do
- Align your internal audit schedule to produce escrow account certificates within 15 days post-quarter.
- Notify your audit team and compliance department about the fortnight deadline immediately.
- Review current submission timelines and fix any gaps to avoid non-compliance.
- Maintain a tracker for quarterly certificate submissions to ensure timely filing.
Who it affects
All scheduled commercial banks issuing prepaid payment instruments, Authorised payment system operators handling prepaid instruments
What is the exact deadline for submitting the auditor certificate?
The certificate must be submitted within a fortnight (15 days) from the end of the quarter to which it pertains.
What happens if we miss the deadline?
RBI has noted non-compliance and may take action under the Payment and Settlement Systems Act, 2007, including potential penalties.
Does this apply to all prepaid payment instruments?
Yes, the requirement covers all prepaid payment instruments issued by scheduled commercial banks and authorised payment system operators.